Much of the Research on the Minimum Efficient Scale Suggests

question 23

Multiple Choice

Much of the research on the minimum efficient scale suggests that for many firms the LRAC curve is:

• A)downward sloping over the relevant range of output.
• B)upward sloping over the relevant range of output.
• C)U-shaped.
• D)flat over a relatively large range of output levels.

---

Definitions:

Directional Hypothesis

A hypothesis that specifies the direction of the expected difference or relationship between variables.

Null Hypothesis

A default statement that indicates no effect or no difference, used as a starting point for statistical hypothesis testing.

Directional Hypothesis

A hypothesis that outlines the anticipated direction of the difference or relationship.

Critical Value

A threshold in a statistical test that defines the boundary for deciding whether an observed statistic is extreme enough to reject the null hypothesis.